Using Panel Data Analysis to Estimate Confidence Intervals for the DEA Efficiency of Individual Urban Paratransit Agencies GCP-07-10

Darold T. Barnum*, John M. Gleason, Brendon Hemily
Darold Professor of Management and Professor of Information & Decision Sciences at the University of Illinois at Chicago,
John Professor in the Department of Information Systems and Technology within in the College of Business Administration at Creighton University in Omaha,
Brendon Hemily Principal for Brendon Hemily and Associates

This paper demonstrates a methodology using Panel Data Analysis to estimate confidence intervals for the Data Envelopment Analysis (DEA) efficiency of individual urban paratransit agencies and the statistical significance of trends in individual agency efficiency.  The procedure accounts for stochastic variations of the inputs and outputs of the target agency as well as stochastic variations of the inputs and outputs of its efficient benchmark peers.  The procedure is demonstrated using nine years of data from 34 urban paratransit agencies.

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